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How can you use GTAP Data? International Computable General Equilibrium Modeling: Some GTAP Applications –Global Trade Analysis: FTAs, PTAs, WTO, etc. –Poverty –Energy, Environment and climate change –Land Use and agricultural issues –Migration and labor issues –Growth and development –Factor movements and technology 8

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How is GTAP Data Base constructed? Collect the I-O tables from contributors “Process” them Reconcile them with international datasets Assemble the data into a single consistent and balanced database 9

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The Database (Contd.) Some Inferences from the database: –Divergent tariffs: Highest for Automobiles, MCs –All tariffs for imports from SEA are higher than for those from ROW, most divergent for OtherTrans, Automobile, MC. –OtherTrans (ROW) and Engines&Parts (SEA) dominate India’s Auto imports –SEA’s share in India’s total imports is lower for AUTO than in MCs, MC parts and Engines&Parts

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Closure 28 PE ModelGE ModelPE-GE Model Exogenous: Changes in total output and demand in all sectors and regions. Changes in all price, tax and quantity variables for non-Auto sectors at i level. Changes in import tax and import-augmented technical-change (amsk krs ) variables at k-level. Slack variable for tradeables market- clearing at k-level. Endogenous: All other price, tax and quantity changes and slack variables. Exogenous: Changes in endowment output, world price index for primary factors, distribution parameters for savings, government and private consumption and population. Slack variables for consumer goods, endowments, income, profits, savings price and tradeables ’ market clearing; All technical and tax change variables. Endogenous: All other price and quantity changes and slack variables. Exogenous: Changes in endowment output, world price index for primary factors, distribution parameters for savings, government and private consumption and population. Slack variables for consumer goods, endowments, income, profits, savings price and tradeables ’ market clearing; Slack variables for different prices, quantities and welfare-count-variables are exogenous for non-Auto sectors. All technical and tax change variables at i level, except tms irs txs irs tm ir tx ir and ams irs that are exogenous for non-Auto sectors. Endogenous: All other price, tax, technical and quantity changes and slack variables.

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Conclusions (Contd…) “False Competition” in some sub-sectors  Substitution from ROW to SEA: lesser extent in PE-GE, as SEA has a lower share in India’s AUTO imports, but not at SSECT level. Welfare differences are notable: –India’s net welfare loss is much lower in PE-GE –India loses more in TOT and gains more! Results not sensitive to assumed elasticities.